News Corp, the multinational publisher, has announced a restructuring plan in an effort to save $65 million in operating costs. As part of this plan, it is expected that up to 100 staff members will be laid off from its Australian operations. This is the second round of cuts in two years for the company, as it aims to combat falling ad revenues.
The restructuring will result in the formation of three units within the business: free mastheads, subscription-based tabloid newspapers, and “prestige titles.” The latter category includes well-known publications such as The Australian newspaper, Vogue magazine, The Weekend Australian Magazine, and other Condé Nast titles. This new structure aims to streamline decision-making processes and centralize operations on a national level.
The decision to lay off staff has raised some eyebrows, particularly with regards to the removal of Lisa Muxworthy, the editor-in-chief of news.com.au. Despite the website’s significantly higher monthly readership of 12 million compared to The Australian’s 3.5 million, Muxworthy’s position was eliminated. It was under her leadership that news.com.au broke the Brittany Higgins rape story, further highlighting the surprise surrounding her departure.
The restructuring plan was advised by PwC and is set to be implemented in the second half of June. These changes have been prompted by an anticipated reduction in ad revenues due to Meta canceling its deals with publishers under the News Media Bargaining Code.
In the March quarter, News Corp’s Australian operations experienced a 10 percent decline in revenue. This decrease was driven by lower print and digital advertising income, despite an increase in digital subscribers. Michael Miller, the Executive Chairman of News Corp, acknowledged the need for adaptation in the rapidly changing media landscape. He emphasized the company’s commitment to diversifying revenue streams through consumer subscriptions and expanding relationships with commercial clients.
The Media Arts and Entertainment Alliance has revealed that unionized staff at News Corp Australia have accepted a 12-month extension to their enterprise bargaining agreement, with a 3.5 percent pay rise. However, the cap on redundancy payments has been set at $399,500. Uncertainty remains regarding the longevity of jobs, as News Corp has expressed interest in utilizing AI-produced content as a cost-saving measure. The company recently signed a deal with Open AI, granting the developer access to current and archived content from all of News Corp’s publications.
The restructuring announcement followed a budget meeting attended by top executives, including Rebekah Brooks, the boss of News UK, Robert Thomson, the global chief executive, and Lachlan Murdoch, the chairman who took over from his father, Rupert Murdoch, last year. This move signifies News Corp’s commitment to evolve and adapt to the changing landscape of news consumption while maintaining its dedication to quality journalism and championing causes important to Australians.
